Bond King Bill Gross warns: "Bottom-fishing in U.S. stocks is like catching a falling knife," stay away from this "epic" market storm
As U.S. stocks plummet due to Trump's tariff policy, investor Bill Gross warns to stay away from this "epic" market storm. He points out that the current wave of selling is a "serious market event" with no signs of resolution in the short term. Gross believes the impact of these tariffs is profound, akin to the collapse of the Bretton Woods system, but with consequences that are more immediate. He advises investors to be patient and wait rather than trying to bottom-fish, although there may be opportunities for domestic companies like AT&T and Verizon in a declining interest rate environment
As the U.S. stock market faced a severe blow from Trump's tariff policy, the "Bond King" Bill Gross issued a stern warning to investors to stay away from this "epic" market storm.
On Thursday, the S&P 500 index plummeted more than 4%, with approximately $2 trillion in market value evaporating throughout the day, while risk aversion pushed the 10-year U.S. Treasury yield briefly below the 4% mark. With escalating tariff concerns severely impacting the capital markets, legendary investor Bill Gross advised stock investors looking to buy the dip to remain on the sidelines, stating that this sell-off is a "serious market event" with no signs of resolution in the short term.
The core of this "epic" market event lies in President Trump's tariff policy. According to CCTV, Trump announced broad tariff measures on Wednesday local time, imposing at least a 10% tariff.
Gross believes the impact of these tariffs is similar to the collapse of the Bretton Woods system, both having far-reaching implications, but the difference is that the negative consequences of the current crisis are more rapid and direct. Gross bluntly pointed out:
Trump will not back down in the short term; he is too stubborn to do so.
Although the market outlook is bleak, Gross is not entirely bearish. He believes that there may be opportunities in U.S. domestic companies that can provide relatively safe dividends in a declining interest rate environment, such as AT&T and Verizon. As of Thursday's close, the stocks of these two companies still maintained slight gains.
However, Gross also cautioned investors to be careful even with these stocks — they are approaching the 'overbought' zone. For most investors, the wisest choice now may be to patiently wait rather than bravely "catch the falling knife."
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